Globex Mining has reached an agreement with NSGold Corporation wherein Globex has reduced its Gross Metal Royalty (GMR) on the Mooseland Gold Mine property in Nova Scotia from a 4% GMR to a 2% GMR and eliminated the potential 5% share issuance upon production in exchange for the immediate issuance of 1,745,408 shares of NSGold, representing 11.1% interest in the company.
Image: A gold mineral. Photo: courtesy of carlos aguilar/Freeimages.com.
It is our expectation that the reduction of the GMR will facilitate the potential of the Mooseland Gold deposit advancing toward production. The Mooseland Gold deposit is a Meguma type gold deposit with a NI 43-101, Non-Diluted, Inferred Resource of 2,520,000 tonnes grading 5.6 g/t Au at a cut off grade of 2.6 g/t Au for 454,000 contained ounces of gold (NI 43-101 Resource Update on the Mooseland Gold Property, Halifax County, Nova Scotia, prepared for NSGold Corporation by Douglas Roy, M.A.Sc., P. Eng. and Patrick Hannon, M.A.Sc., P. Eng., Minetech International Limited, Halifax, Nova Scotia, Canada, Effective date: July 20, 2012). Infrastructure at the mine site includes: road access, power, a 3 compartment 125 metre shaft, a 218 metre ramp and a 12,000 cubic metre settling pond.
Globex is pleased to become a large shareholder in NSGold and looks forward to seeing the Mooseland Gold Deposit advancing.
Source: Company Press Release.